The Effect of the Harmonized Sales Tax on Consumer Prices in Atlantic Canada

David Murrell and Weiqiu Yu

Canadian Public Policy, 2000, vol. 26, issue 4, 451-460

Abstract: This paper examines the effect of the Harmonized Sales Tax (HST) on consumer prices for the three participating Atlantic Canada provinces from April 1997 to March 1999. Using aggregate and disaggregate (eight-components) consumer price index (CPI) data, we conduct counter-factual analysis and find that, ceteris paribus, while the consumer price index for overall items fell slightly during the first two years of the HST, the change in the components of the CPI varies substantially from one category to another.

Date: 2000
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